U.S., EU Seal $1.35 trillion Trade Deal, Slash Tariffs to 15%

- Landmark transatlantic deal cuts tariffs on most EU goods from 30% to 15%. - Agreement includes $750 billion in U.S. energy purchases and $600 billion in EU investments. On July 27, 2025, the United States and the European Union reached a landmark trade deal following high-stakes discussions between U.S. President Donald Trump and European Commission President Ursula von der Leyen. The deal cuts tariffs on most goods imported from the EU to 15%, down from an initial proposal of 30%. This decisive step strengthens transatlantic trade relations and reduces economic friction between two of the world’s largest trading powers. According to a July 27, 2025 report from Reuters, the deal entails several expansive commitments, including a pledge from the EU to purchase $750 billion worth of U.S. energy products and to invest $600 billion in the American economy. The agreement also includes a military procurement clause where the EU will acquire significant amounts of U.S. defense equipment, though specific figures remain undisclosed. While the deal exempts critical goods like aircraft, pharmaceuticals, and specific chemicals from new tariffs, the existing 50% tariffs on steel and aluminum imports will remain in place. The breakthrough came after leaders concluded marathon negotiations at President Trump’s golf resort in Scotland to resolve persistent trade disputes. The outcome had been uncertain, as Trump previously downplayed the probability of reaching a deal by describing the chances of success as “50-50,” while the EU had prepared a slate of retaliatory tariffs on U.S. goods in case the talks failed. Global leaders have widely praised the deal. For example, Irish Prime Minister Micheál Martin stated that the agreement brings clarity and predictability to the trading relationship between the EU and the US. In addition, German Chancellor Friedrich Merz welcomed the halving of automobile tariffs, calling it a boon for Germany’s export-heavy manufacturing economy. As a vocal advocate for resolving the trade impasse, Merz had previously emphasized the need to protect German manufacturers from steep tariffs. This agreement marks a critical development in transatlantic economic cooperation that reshapes the business landscape for companies operating on both sides of the Atlantic. As a result, industry leaders will closely monitor the deal's implementation in the coming months.